Oschadbank (December 9, 2014)

Summary

Currently Oschadbank has two Eurobond issues outstanding, maturing in 2016 and 2018. They offer yields (YTMs of 44% and 26%, respectively) that are at a significant spread above those of the sovereign Ukrainian Eurobonds of similar duration. However, the bank still has one of the highest capital adequacy ratios (21.5%) in the country, and its net interest margin stood at 11% as of 9M2014. We thus consider the probability of Oschadbank defaulting on its external obligations to be low.

Ukreximbank (December 9, 2014)

Summary

Currently Ukreximbank has three Eurobond issues outstanding, maturing in 2015, 2016 and 2018. Two of the shorter-term bonds offer yields (YTMs of 66% and 44%, respectively) well above those of the sovereign Ukrainian Eurobonds of similar duration. Ukreximbank, being wholly-owned by the state and playing a major role in the export-import operations of Ukraine, is likely to receive support from the Government and NBU in order to stay afloat, should its financial position deteriorate. Moreover, with the upcoming tranches from IMF and WB, the NBU should have enough resources to support the bank. We consider the probability of Ukreximbank defaulting on its external obligations as low.